Compliance Verification Trends - August 2022

Canada Border Services Agency prioritizes certain industries and products for audits to ensure ongoing compliance. The Agency keeps their verification priority list current on their website. Cole’s Audit Response Team also keeps track of trends we see in CBSA verifications, which we share with you regularly so you can feel secure about your customs compliance.

Forewarned is forearmed

Preparation is key if you’re importing targeted items. 

Items on the CBSA’s priority list are very likely to be audited. So it’s important that you know which goods are being targeted, and that you ensure customs compliance when importing those items. Being prepared gives you the chance to adapt, account for added costs, adjust selling prices, and generally soften the impacts to your business.

If you aren’t prepared and CBSA finds non-compliance, you may be facing duties, taxes, and additional penalties. It’s worth staying on top of the targeted items and making sure you comply with all customs requirements.

Update – August 2022

Over the past few months, we have seen verifications for the following products:

• The CBSA is doing a NAFTA verification against certain seat covers for motor vehicles falling under tariff classification 6304.93.10. This is for shipments entering Canada in 2019.
• The CBSA has also denied specific NAFTA certificates on goods entering Canada under tariff classification heading 4202.92 which covers other carrying cases with outer surface of sheeting or plastic or of textile materials.

What to do

If you import any of the targeted goods, or goods close in nature to those on the target list, our audit specialists recommend:

• An internal review to ensure your imports have accurate and complete documentation
• Detailed technical information on your products, and copies of any past rulings, verification results, or custom opinions so your customs broker or consultant can help review your product classifications
• A voluntary disclosure if your review reveals any errors or omissions

We can help

Our dedicated Audit Response Unit keeps current on verification trends and have decades of experience managing customs verifications. We understand the potential risks and costs to a business facing an audit. We work with you to both avoid being audited and to respond effectively if an audit does happen. Contact one of our experienced customs professionals today.

Watching audit trends. It's what we do.